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Thread: RCI: $1-Billion Share Buyback, 10% Dividend Hike

  1. #1
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    RCI: $1-Billion Share Buyback, 10% Dividend Hike

    Was speaking with a friend of mine who yesterday heard on BNN that Rog was intending on buying back $1 Billion dollars in shares ... and in Feb is intending to increase their dividend payout by 10%.

    I asked my friend (who regularly watches BNN) if BNN is prone to parroting 'loose and unsubstantial' rumours or whether they wait until they've got something substantial and they said the latter.

    So if you're wondering why:
    - your fees are constantly being jacked by Rog, or
    - your your services reduced (e.g. UMA, LCA), or
    - 3G deployment is taking so long, or
    - existing 3G networks are lately more like notworks, or
    - SMS problems are intractable, or
    - why hold times for agents have been quite long in the recent past, or
    - why Rog needs to make a profit margin on their Wireless side that is north of 40%

    Well, remember that Rog has many hungry, hungry shareholders to feed, and if you're going to spoil them with a $1B in share buyback AND 10% hike in divi's ... well, that's money that could be used elsewhere but the brain trust at Rog wants to spend that on lining their shareholder's pockets and not, apparently, trying to build/repair a network that used to be hailed as Canada's "most" reliable, nor on improving customer service.

    Opportunity costs? Indeed.

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    let me preemptively reply

    Name calling and belittling other members will not be tolerated.
    Keep this in mind when you're debating hot issues as this.

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    Quote Originally Posted by Moderator HF 20 View Post
    let me preemptively reply

    Name calling and belittling other members will not be tolerated.
    Keep this in mind when you're debating hot issues as this.
    agreed
    things are turning nasty. time to make hofo fun again

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    I haven't heard any stock news since the potential MLSE buyout and they increase their ownership in Cogeco, again, at the beginning of November.

    EDIT: I stand corrected.

    TORONTO, Dec. 7 /CNW/ - Rogers Communications Inc. ("Rogers") announced today that it has agreed to purchase for cancellation 3,100,000 of its outstanding Class B Non-Voting shares ("Class B shares"), or approximately 0.69% of the Class B shares outstanding at November 30, 2010, pursuant to a private agreement between Rogers and an arm's-length third party seller (the "Private Purchase") for an aggregate purchase price of $100,270,740, which is at a discount to the current market price of the Class B shares. The Private Purchase was made under an issuer bid exemption order issued by the Ontario Securities Commission. The Class B shares purchased under the Private Purchase will be included in calculating the number of Class B shares that Rogers may purchase through its outstanding normal course issuer bid.

    In the twelve months preceding this purchase, Rogers has repurchased an aggregate 41,337,906 Class B shares, of which an aggregate 11,380,000 Class B shares were repurchased pursuant to issuer bid exemption orders issued by the Ontario Securities Commission and an aggregate 29,957,906 Class B shares were repurchased pursuant to normal course issuer bids. Of the 41,337,906 Class B shares purchased in the twelve months preceding this purchase, 33,980,906 were repurchased in 2010 and 7,357,000 were repurchased in 2009.
    Last edited by Sammy740; 12-09-2010 at 12:32 PM. Reason: Found article
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    Any references for all of this???

    Searching Google is turning up a story that sounds very similar to this but is dated February 2010.

    http://www.thestar.com/business/arti...-hike-dividend

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    Quote Originally Posted by BellVictim View Post

    Well, remember that Rog has many hungry, hungry shareholders to feed, and if you're going to spoil them with a $1B in share buyback AND 10% hike in divi's ... well, that's money that could be used elsewhere but the brain trust at Rog wants to spend that on lining their shareholder's pockets and not, apparently, trying to build/repair a network that used to be hailed as Canada's "most" reliable, nor on improving customer service.

    Opportunity costs? Indeed.


    Do you own mutual funds or have some sort of pension benefit? If so, you're one of those greedy shareholders.

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    Business exists to reward shareholders. The Board of Directors has a legal responsibility to do what is in their shareholders' best interests. Investing back into the business and providing immediate share value are both methods that can and do reward shareholders appropriately. They just don't necessarily happen at the same time. If the BoD sees that lack of plowing profit back into capital investment or service improvements is hurting market-share or the ability to attract the most profitable segment of the market they will adjust. That's what business does. A business that puts consumer interests ahead of profitability will quickly fail and have no consumers to serve (or have to make complaints).

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    Quote Originally Posted by robsaw View Post
    Business exists to reward shareholders. The Board of Directors has a legal responsibility to do what is in their shareholders' best interests. Investing back into the business and providing immediate share value are both methods that can and do reward shareholders appropriately. They just don't necessarily happen at the same time. If the BoD sees that lack of plowing profit back into capital investment or service improvements is hurting market-share or the ability to attract the most profitable segment of the market they will adjust. That's what business does. A business that puts consumer interests ahead of profitability will quickly fail and have no consumers to serve (or have to make complaints).
    That's accurate. I'm a customer, and a [small] shareholder. From both positions, I want the company to be financially healthy. I believe I can have both a stable vendor, and a stable investment, in one company.

    Props to MOD and Treatz for the strategic vs. tactical approach
    Steve...

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    Quote Originally Posted by sk1d View Post
    Do you own mutual funds or have some sort of pension benefit? If so, you're one of those greedy shareholders.
    Good point. If not a shareholder, certainly more than likely a stakeholder.

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    That's probably an analyst answering a question by a viewer or the host, expressing the analyst's (or brokerage firm's) opinion that Rogers is likely to do those things, based on published financial statements and perhaps analysts meet-ups.

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    BV, are u up to ur old tricks.
    Unfortunately no further comments from my side.

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    Quote Originally Posted by sk1d View Post
    Do you own mutual funds or have some sort of pension benefit?
    No.
    If so, you're one of those greedy shareholders.
    For the record, my word was "hungry".

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    Quote Originally Posted by ESTO View Post
    That's probably an analyst answering a question by a viewer or the host, expressing the analyst's (or brokerage firm's) opinion that Rogers is likely to do those things, based on published financial statements and perhaps analysts meet-ups.
    Actually, it was one of the hosts doing a news piece.

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    and Bell is upping their dividend 7.7%. Rather than buying back shares, its plowing $ into its underfunded pension plan to ward off a pension crisis...

    http://www.bce.ca/en/news/releases/c.../10/76781.html

    This would explain why my BCE shares jumped this week.

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    Quote Originally Posted by sk1d View Post
    Do you own mutual funds or have some sort of pension benefit? If so, you're one of those greedy shareholders.
    ....Please make a logical argument how a person would be greedy shareholder for expecting a modest return or "any type" of return. I guess your argument which lacks any form of intelligence assumes that shareholders are characterized by only greed because they want to profit from their own personal investment in which they had worked hard for their money.
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